The NFT industry seems to have become a major player in the blockchain universe. Both the blockchain market and the traditional financial industry have turned their attention from mining to NFT. New NFT projects have sprung up, which has a strong momentum to detonate the next encryption wave. The hot wind of NFT has also blown from inside to outside.
At the same time, this upsurge is no longer limited to digital art collection. In sports, music, games and other industries driven by “fan economy”, the emergence of NFT technology has brought more possibilities for financial investment.
After three years of deposition, NFT recovered
The earliest NFT can be traced back to 2017. There was a pixel avatar project called cryptopunks in Ethereum. At that time, people with Ethereum wallet could get it for free and then trade in the secondary market. Later, the small outbreak of NFT, that is, the popularity of cryptokitties encrypted cat, flourished in the bull market in 2017 and became the first popular DAPP that paralyzed the Ethereum public chain.
In the encrypted cat game, users can buy, collect, sell and breed virtual cats. Different cats have a unique combination of attributes, and even each cat is different in the combination of eyes, hair, tail, mouth and even expression. It is precisely because of this rarity that the cat image in the game becomes NFT for trading and collection.
Three years later, the flow blockchain developed by the same team dapper labs made a comeback. Its NFT card game NBA top shot took only three months, breaking the previous record with 1 / 6 of the number of encrypted cat users, reaching $21 million, and the user retention rate was as high as 75%.
The origin of NFT’s real out of circle
When it comes to NFT’s real emergence, it may be inseparable from the involvement of celebrities and traditional finance. Twitter founder Jack Dorsey sold his first personal tweet in 2006 at the valuables online auction in the form of NFT, with the content of “just setting up my twttr”. The final transaction price of the tweet exceeded $2.9 million.
Tesla CEO musk announced on twitter that he would sell an NFT themed dance song as an NFT. In the video background of dance music, an NFT trophy rotates in space, surrounded by cryptocurrency.
Moreover, in this round of NFT, the entry of luxury industry and traditional art auction industry is the main force to promote NFT out of the circle. In a special Christie’s auction, the pure digital work “everydays: the first 5000 days” from American artist beeple sold for nearly 70 million US dollars, setting a new auction record for digital works of art.
NFT’s “siege” dilemma
Although NFT is widely regarded as a breakthrough product in the blockchain field after defi, there are still some unavoidable “bottleneck” problems in NFT at the initial stage of development. A large number of inferior works of art began to appear and sell in the form of NFT. The madness of the market exceeded the imagination of artists, and criticism of digital art followed. It is shocking that beeple, the biggest beneficiary of NFT at present, changed all eth into US dollars for the first time when he received eth payment after the auction. This seems to many people like a traitor who suffered NFT blessing but escaped in an instant.
Not only that, the NFT market bubble is serious, but the application and development still face other risks. As far as NFT itself is concerned, it is still facing difficulties such as imperfect infrastructure and liquidity problems; In terms of external environment, NFT ecological development has encountered bottlenecks, lack of copyright, security vulnerabilities, policy supervision and other problems. This has caused the NFT to look prosperous, but it is very like a castle in the air.
Many “popular models” of NFT come out of the circle
As we all know, NFT will have rich applications in art, music, culture, public welfare, trendy play, games, sports, ACG, etc. more and more popular funds will be sold out of the street, which will inevitably give users outside the blockchain industry a deep feeling.
Although NFT itself has some limitations, it does not hinder the future development of NFT. In the first part, we talked about that NFT is composable. In addition, since NFT is the product of the integration of virtual and reality, compared with other applications based on blockchain technology, the combination of NFT and reality is closer and more practical. Therefore, the future of NFT may be more combined with financial attributes such as lending, games and capitalization to accelerate its circulation.
At present, the most active plate art of NFT in the market has become the first hot place to explore the capitalization. As early as ten years ago, financial “giants” such as Deutsche Bank, Citibank and Bank of America issued art financing credits. The art finance departments of these private banks will cooperate with institutions such as Athena art Finance Corp and arttemis to make corresponding price judgments based on the evaluation of the appearance, rarity and integrity of works by professional art connoisseurs, So as to unlock a certain liquidity by using art as collateral. The encryption market integrates the defi play method of last year’s fire on the basis of the traditional concept. Many NFT projects temporarily exposed this year are adding the original concept of defi such as liquidity mining.
Cross new play – liquidity breakthrough
Although NFT has a wide range of fields, at present, it is mainly dominated by four sub markets, namely art NFT (Art Collection), fi-nft (defi financial voucher), ip-nft (intellectual property) and game NFT (game).
Cross, a decentralized NFT platform, has included Mystery Box (game NFT) and art-nft. At the same time, it is also planning and expanding ip-nft and fi-nft. Cross loans is adopted to solve the liquidity problem. In the future, NFTs that succeed in Cross auction can borrow through mortgage, cycle back and forth, form an ecological closed loop, and let NFTs really flow.
In addition, all non physical goods can be used as NFT. There is still a broader space for NFT market. At the same time, NFT has more landing applications. Through the digital circulation of private equity and trust shares on the chain and the combination of defi and NFT, the process of asset digitization and digital capitalization can be accelerated faster.
Although there are many doubts about NFT, the NFT market is still booming. At present, the mapping of traditional game props, works of art, real estate and intellectual property rights to NFT network is the most direct way to detonate its market, solve real economic problems and provide liquidity for real assets. In short, NFT’s liquidity premium is the core to support its long-standing “asset” value.
It is believed that innovative tools such as NFT loan mortgage products and NFT exchanges will continue to emerge. Whether it is art collections, real estate or intellectual property rights, more and more people will no longer worry that the NFT products purchased at a high price can not be sold. Cross focuses on the future and will break the limitations of NFT through borrowing, or surprise the whole NFT economic field.
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